Solution:
If the Terminal Type cannot be set through the TTY configuration then it can be manually set using a number of methods.
Using tset you can place this in the .profile file to process the TERM type or prompt for the type. Add the following line to the .profile script:
eval `tset -m :\?$TERM -r -s -Q`
then when the user log's in they will be prompted with the term type.
Using the export command.
You can verify the TERM type using:
#echo $TERM
To manually set the TERM type at the command line type:
#export TERM=
example: #export TERM=vt100
Creating a script set the term based on the tty device name.
You can also set this the .profile file to set the terminal type at login automatically.
example of a shell script that will set the TERM type if the user logs in on /dev/tty3:
device=`tty`
if [ "$device" = "/dev/tty3" ]
then
export TERM=vt100
fi